A caller asked for Jim Cramer’s long-term thoughts on Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) during the lightning round of the September 14 episode of Mad Money. He replied:
They have a good model. They remind me of Hinge, not exactly, but in just this kind of discreet good model will make money. And I think you’re right. I think you should hold on to it.
Why Cramer Compared AVAH With HNGE
The comparison comes as both companies are growing, but Hinge Health, Inc. (NYSE:HNGE) is expanding at a much faster rate. Aveanna Healthcare Holdings Inc. reported second-quarter revenue of $670.5 million, up 13.7% year over year, while adjusted EBITDA rose 8% to $95.4 million. CEO Jeff Shaner said the second-quarter results demonstrated “the momentum across Aveanna and our ability to consistently deliver sustained year-over-year growth.” The company raised its 2026 revenue guidance to more than $2.68 billion and adjusted EBITDA guidance to more than $365 million.
Hinge generated $212.8 million of second-quarter revenue, up 53% from a year earlier, while free cash flow increased to $99.6 million from $32.6 million. CEO Daniel Perez said the quarter’s outperformance was “driven by continued high member conversion” and reflected Hinge’s ability to “deliver a great experience, improve member outcomes and lower client costs.” The company raised its 2026 revenue guidance midpoint to $858 million, representing 46% year-over-year growth.
AVAH and HNGE Show Two Different Healthcare Models
Aveanna Healthcare Holdings Inc.’s private-duty-services business is facing margin pressure. PDS revenue increased 14.0% in the second quarter, but PDS cost of revenue rose 20.1%, pushing the segment’s spread rate down 11.1% to $12.88 from $14.29. The company attributed the higher cost-of-revenue rate primarily to higher caregiver labor costs, including the pass-through of reimbursement-rate increases, and higher general and professional liability reserves. It also had approximately $1.32 billion of term-loan principal outstanding at July 4, while net interest expense totaled $54 million during the first six months of 2026. The debt burden adds a financing cost to a business already dealing with higher labor and liability expenses.
Hinge Health, Inc.’s risks are different. Client contracts through partners accounted for 85% of revenue in the first six months of 2026, while HCSC, Elevance and Aetna accounted for 15%, 13% and 10%, respectively. Hinge says a substantial portion of its client relationships are contracted through a limited number of health plans and other partners, and that losing those relationships could materially affect its business. The company also says it has incurred net losses annually since inception and may not maintain profitability.
What Hedge Funds Are Doing With AVAH and HNGE
According to Insider Monkey, which tracks more than 1,000 hedge funds, 38 hedge funds held AVAH in Q2, compared with 39 in Q1. HNGE was held by 48 hedge funds in both Q2 and Q1. Recent short-interest data puts AVAH at approximately 2.7% to 5.7% of float, while HNGE ranges from roughly 8.3% to 10.6%.
Cramer’s comparison appears to center on the attractiveness of the companies’ business models rather than operational similarity, because their financial profiles are quite different. Aveanna Healthcare Holdings Inc. is dealing with rising labor costs and pressure on its private-duty-services margins, while Hinge Health, Inc. is posting much faster growth and expanding into additional areas of care.
READ NEXT: Jim Cramer Explains Why Merck (MRK) Is His Fantasy Defense Stock and Eli Lilly’s (LLY) GLP-1 Growth Made It a Core “Running Back” Stock for Jim Cramer.
Hedge Fund Resource Center